Managing RMDs

jimarcher6837
jimarcher6837 Quicken Windows Subscription Member ✭✭
edited March 2023 in Investing (Windows)
Is there some direct functionality for handling RMDs? There is no category for RMDs which will enable simple reporting for budgeting or taxes. There are work arounds, but those are clumsy and inadequate for effective tracking.
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  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    No, there is currently no special support for RMDs.

    If you would like to see Quicken improved in this area, please vote on this product improvement Idea by clicking on the little up arrow in the big blue box at the top of the discussion.
    https://community.quicken.com/discussion/7864626/improve-handling-of-ira-distributions-qcds-and-roth-conversions
    QWin Premier subscription
  • jimarcher6837
    jimarcher6837 Quicken Windows Subscription Member ✭✭
    Jim Harmon, I followed the links and read the comments, so I am not alone. I did vote. It seems that with the retiree population increasing that the number of users should increase also. I would probably pay another $5 to $10 annually for RMD / IRA / ROTH / QCD functionality.

    Sherlock, I started with Quicken back in '95, but due to PC corruptions, lost data going back before 2014. None of that is relevant to this discussion....Can you describe your work arounds for handling RMDs / IRAs?
  • Sherlock
    Sherlock Quicken Windows Subscription Member ✭✭✭✭
    jimarcher6837 said:
    Jim Harmon, I followed the links and read the comments, so I am not alone. I did vote. It seems that with the retiree population increasing that the number of users should increase also. I would probably pay another $5 to $10 annually for RMD / IRA / ROTH / QCD functionality.

    Sherlock, I started with Quicken back in '95, but due to PC corruptions, lost data going back before 2014. None of that is relevant to this discussion....Can you describe your work arounds for handling RMDs / IRAs?
    We happen to use an annual transfer reminder for the estimate of an RMD.  After we know the market value of the retirement account on December 31st, we edit the reminder for the next year.  The calculation is basically the value of the account on December 31 divided by your life expectancy according to the IRS.  It is simple enough to keep the calculation in the memo field for reference as we adjust it each year.

    In case you are unaware, the RMD was waived in the CARES act for 2020: https://www.irs.gov/newsroom/irs-announces-rollover-relief-for-required-minimum-distributions-from-retirement-accounts-that-were-waived-under-the-cares-act
  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭
    There is really nothing I see different in an "RMD withdrawal" and any other withdrawal from the IRA.  The RMD rules are simply that you must for the year withdraw a certain amount from the account based on prior year 12/31 value and the life expectancy factor as @Sherlock outlined. 

    What users need to do is simply make sure their total withdrawals for the year exceed the required minimum (again noting the exception for this year).  For me that can accomplished with a simple Investment Transactions report customized to the IRA account and Withdrawal (or XOut) transactions for the applicable year. 

    The other 'consideration' is the the "Tax Schedule" (Edit Account Details) for the account should be properly set to have Transfers Out categorized to the proper tax line.  That is, if the user wants withdrawals to properly flow into tax planners and tax reports.  But again, there is nothing special about RMDs in that context.   

     
  • Wayne Daren
    Wayne Daren Quicken Windows Subscription Member ✭✭✭
    > @jimarcher6837 said:
    > Jim Harmon, I followed the links and read the comments, so I am not alone. I did vote. It seems that with the retiree population increasing that the number of users should increase also. I would probably pay another $5 to $10 annually for RMD / IRA / ROTH / QCD functionality.
    >
    > Sherlock, I started with Quicken back in '95, but due to PC corruptions, lost data going back before 2014. None of that is relevant to this discussion....Can you describe your work arounds for handling RMDs / IRAs?

    There should be one screen to enter at one time the gross distribution, taxes withheld, and the accounts involved. If you have money in multiple funds it is a pain to monthly manually enter all the necessary information for every single fund transferring funds, and setting up the correct taxable amount and category every month.
  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭
    First you enter Sell transactions for the funds involved, with the cash going to the account's cash balance. 

    Then you go to the receiving taxable account and enter one split Deposit transaction. The first line of the split is the gross distribution amount and the other lines are for the taxes withheld, entered as negative numbers. The net amount of the deposit will be the amount deposited in your account.

    You should delete or not accept any transactions that were downloaded for the transfer.
    QWin Premier subscription
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